Question : REFINING CAPACITY



(a) whether the crude oil refining capacity has been continuously rising for the last few years in the country;

(b) if so, the quantum of increase in the said capacity made during each of the last three years and the current year;

(c) whether profits of companies engaged in refining of crude oil have increased during the last three years;

(d) if so, the details thereof along with the average per barrel profit of such companies during the said period, company-wise; and

(e) the other steps being taken by the Government to increase the refining capacity in the country?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SMT. PANABAAKA LAKSHMI)

(a) and (b) Yes, Madam. Refining capacity has been continuously rising for the last few years in the country. Increased Refining capacity during each of the last three years and the current year in the country is as under:

Capacity as on	Cumulative Refining capacity	(Million Metric Tonne Per Annum)

1.4.2010 185.40

1.4.2011 193.40

1.4.2012 213.18

1.10.2012 215.07

(c) and (d) The Profit After Tax(PAT) of the downstream public sector oil marketing companies and the three stand-alone refineries in the public sector after accounting for the compensation of their under-recoveries during the last three years are as under:
(Rs. Crore)

Name of the Company 2009-10 2010-11 2011-12

Downstream Oil Companies

Indian Oil Corporation Limited 10221 7445 3954

Hindustan Petroleum Corporation Limited 1301 1539 911

Bharat Petroleum Corporation Limited 1538 1547 1311

Stand Alone Refineries

Mangalore Refinery & Petrochemicals Limited 1112 1177 909

Chennai Petroleum Corporation Limited 603 512 62

Numaligarh Refineries Limited 232 279 184

The downstream oil companies could report profits only as a result of getting significant compensation of their under-recoveries from the Government and public sector upstream oil companies.

The Gross Refining Margins reported by Public Sector Undertaking during the last three years is given as under:
($/barrel)

Name of the Company Refinery 2009-10 2010-11 2011-12

Indian Oil Corporation Ltd. Barauni 3.57 3.91 0.39 Gujarat 3.91 6.42 5.07 Haldia 5.42 4.03 2.38 Mathura 5.62 7.40 0.59 Panipat 3.35 5.68 4.39 Guwahati 7.44 10.01 11.94 Digboi 18.61 16.98 14.85 Bongaigaon 5.23 5.23 6.25 Average 4.47 5.95 3.63

Bharat Petroleum Corporation Ltd. Kochi 4.87 4.83 3.20 Mumbai 1.78 4.23 3.12 Average 2.97 4.47 3.16

Hindustan Petroleum Corporation Ltd. Mumbai 2.80 4.65 2.82 Visakh 2.59 5.81 2.95 Average 2.68 5.30 2.89

Chennai Petroleum Corporation Ltd. Chennai 4.75 5.02 4.16

Mangalore Refinery & Petrochemicals Mangalore 5.46 5.96 5.60 Ltd.

Numaligargh Refinery Ltd. Numaligarh 11.19 15.39 11.97

(e) The refinery sector has been delicensed since June, 1998 and a refinery can be set up anywhere in India by a private or public sector company depending on its techno-commercial viability. The present name plate refining capacity of the country is 215.066 Million Metric Tonnes Per Annum (MMTPA), which is projected to increase to 307.366 MMTPA by the end of 2016-17 as per the Report of the Working Group on Petroleum and Natural Gas Sector on Refinery for the 12th Five Year Plan through new grassroots refineries and expansion of existing refineries.